USD/CAD Price Chart Outlook: Grind Lower Tests Key Support
- Spot USDCAD’s grind lower could come to a halt if key technical support holds around the 1.3000 handle.
- USDCAD pressure could accelerate if the major area of confluence fails to keep spot prices afloat.
Spot USDCAD has edged lower over the last several weeks after printing its recent top of 1.3517 on May 31. Since then, the currency pair has swooned nearly 3.5% lower as upbeat Canadian Dollar prospects encompassing better-than-forecast economic data and a firm BOC coupling with US Dollar weakness driven by increasingly dovish Fed expectations contributed to the downward push.
From a technical perspective, spot USDCAD is now treading water slightly above support at the 1.3000 handle – a major level of confluence dating back decades. This area of support will need to be taken out before bearish momentum can continue.
Spot USDCAD selling pressure accelerated subsequent to the break of 2018’s bullish uptrend. Although, the currency pair threatens to stay afloat with technical support provided by the psychologically-significant 1.3000 price level – which happens to align with the 38.2% Fibonacci retracement of January 2019’s high and September 2017’s low. While premature, a potential inverse head-and-shoulder pattern could be forming. A sharp rebound higher off the current level of technical support would likely serve constructive to this thesis.
- Spot USDCAD’s grind lower could come to a halt if key technical support holds around the 1.3000 handle.
- USDCAD pressure could accelerate if the major area of confluence fails to keep spot prices afloat.
Spot USDCAD has edged lower over the last several weeks after printing its recent top of 1.3517 on May 31. Since then, the currency pair has swooned nearly 3.5% lower as upbeat Canadian Dollar prospects encompassing better-than-forecast economic data and a firm BOC coupling with US Dollar weakness driven by increasingly dovish Fed expectations contributed to the downward push.
From a technical perspective, spot USDCAD is now treading water slightly above support at the 1.3000 handle – a major level of confluence dating back decades. This area of support will need to be taken out before bearish momentum can continue.
Spot USDCAD selling pressure accelerated subsequent to the break of 2018’s bullish uptrend. Although, the currency pair threatens to stay afloat with technical support provided by the psychologically-significant 1.3000 price level – which happens to align with the 38.2% Fibonacci retracement of January 2019’s high and September 2017’s low. While premature, a potential inverse head-and-shoulder pattern could be forming. A sharp rebound higher off the current level of technical support would likely serve constructive to this thesis.